UK mid-sized automotive manufacturers could be missing out on £25bn in revenues as a result of insufficient access to funding, according to research from Wyelands Bank.
The report — which focused on manufacturers that turned over £10m–£300m — revealed that 96% were held back due to a lack of finance.
Other highlights from the research included:
- firms missed out on an average of £24.8m in revenues and an average of 24 new contracts, which would have enabled each firm to create 21 new jobs
- 1,605 mid-sized automotive businesses in the UK have collectively missed out on 24,284 contracts
- difficulties in raising finance prevented 82% of automotive firms from investing in new equipment or technology
- 63% of firms have been held back from entering new markets
- 53% have been prevented from moving to a new site or premises
“Our research shows that UK mid-sized automotive manufacturers are not able to grow to their full potential without greater access to finance,” said Iain Hunter, CEO at Wyelands Bank.
“But that finance has not been available as traditional banks are too often unable to help.
“Helping mid-sized automotive businesses unlock growth would help tackle the UK economy’s productivity challenges.
“Mid-market firms can have a disproportionate effect on growth and job creation, but first they need to be understood as individual businesses.”
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